Bars federal legal settlements that direct payments to third parties

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

This bill would bar federal officials from entering into or enforcing a settlement of a civil case on behalf of the United States that directs a payment, such as a donation, to anyone other than the federal government.^2,3,4 Such payments would still be allowed if they repay or directly remedy actual harm, including environmental harm, caused by the paying party, or if they pay for services connected to the case, and the ban would cover only settlements made after the bill became law.^2,3 Officials who break the ban would face the penalties that already apply under federal law to officials who mishandle government money, which include removal from office and forfeiting certain funds.^2,3 Agencies would report the permitted outside payments to the Congressional Budget Office each year for seven years, and each agency's inspector general would publish yearly reports on any settlements that violate the ban.^2,3

§2Status

§3How Congress voted

Why this matters: The official count.